US Dollar Being Shelved for Bitcoin by the Soviet Giant

Vladislav Ginko, a high-profile Russian economist, in an interview on January 08 said that due to the impact of U.S. sanctions, there is a possibility that Russia would look to moderate the damage through Bitcoin.

Ginko, who is associated with the Russian government for more than 20 years, says the move will happen in a matter of weeks. He also replied on Twitter to Chris Burniske (co-author of Cryptoassets) on January 06 that the Russian government will invest $470 billion reserves into Bitcoins.

Vladislav Ginko, also stated in the interview that

“US sanctions may be mitigated only through Bitcoin use. Because of US sanctions, Russia’s elite is forced to dump US assets and US dollars and invest hugely into Bitcoins.”

Forbes published a report on January 08 that, “Isolation and sanctions are having an impact on the Russian economy. Although Russia is not a big exporter to the U.S.A, canceled energy and defense contracts in Europe coupled with bans on funding Russia’s key lenders have had an impact on the economy.”

Russia has been stocking up on gold as a guard against economic sanctions. According to a Global Research report, Russia has already tripled its gold reserve as it is gearing up for renewed economic tussles with the U.S.

Vladimir Putin, President of Russia, had inaugurated ‘Russia Calling’ an investment forum in November 2018. The President also made it clear that Russia is seeking for alternative reserve currencies.

Mr. Putin also stated in an investment forum that, “We have no intention of moving away from the Dollar, it’s the dollar that’s moving away from us.”

However, Russia is not appeased of merely diversifying its assets. The country is also seeking a closer economic relationship with China to establish a new payment system. This system would be independent of the U.S. dollar. Both countries have discussed the use of yuan; the ruble in their bilateral trade.

With Russia’s potential investment in Bitcoin, it could result in a huge upward surge in the Bitcoin value. According to a survey report published in December 2018, nearly 40% of China‘s public wants to invest in Bitcoin.

We can presume that the price of Bitcoin could experience a sudden upward surge if the Russian government invests in the digital currency massively. The crypto market will enhance with more investors counting on Bitcoin.

With Russia’s massive investment in Bitcoin lead to any surge in the price of Bitcoin? Share your thoughts in the comments below.